,i #aafth ,,congress #ast ,session ,h4 ,r4 #cgij ,,in ,,the ,,house ,,of ,,representatives ,july #ag1 #bjai,mr4 ,dunn introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for a credit against tax for homebuyers purchasing residences in residential recovery zones1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,residential ,recovery ,zone ,act4 #b4 ,residential recovery zone homebuyer credit 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #be;,d the following new section3 #be;,e4 ,residential recovery zone homebuyer credit 7a7 ,allowance of credit 7#a7 ,in general ,in the case of an individual who purchases a principal residence in a residential recovery zone during a taxable year1 there shall be allowed as a credit against the tax imposed by this subtitle for such taxable year an amount equal to #aj percent of the purchase price of the residence4 7#b7 ,timing ,at the election of an individual1 the credit allowed under subsection 7a7 for a taxable year may be allowed instead during any one on the subsequent #c taxable years4 7b7 ,limitations 7#a7 ,dollar limitation 7,a7 ,in general ,except as otherwise provided in this paragraph1 the credit allowed under subsection 7a7 shall not exceed #h1jjj4 7,b7 ,married individuals filing separately ,in the case of a married individual filing a separate return1 subparagraph 7,a7 shall be applied by substituting #d1jjj for #h1jjj4 7,c7 ,other individuals ,if two or more individuals who are not married purchase a principal residence1 the amount of the credit allowed under subsection 7a7 shall be allocated among such individuals in such manner as the ,secretary may prescribe1 except that the total amount of the credits allowed to all such individuals shall not exceed #h1jjj4 7#b7 ,limitation based on purchase price ,no credit shall be allowed under subsection 7a7 for the purchase of any residence if the purchase price of such residence exceeds #a1ejj1jjj4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,residential recovery zone defined 7,a7 ,in general ,the term residential recovery zone means1 with respect to a ,federally declared disaster1 a population census tract that is-- 7i7 in the disaster area related to such disaster1 and 7ii7 designated under subparagraph 7,b74 7,b7 ,designation ,a population census tract is designated under this paragraph with respect to a ,federally declared disaster if1 during the period beginning on the earliest incident date specified in the declaration to which such area relates and ending on the date that is one year after such date-- 7i7 the chief executive officer of the ,state in which the tract is located-- 7,i7 nominates the tract for designation as a residential recovery zone1 and 7,,ii7 notifies the ,secretary in writing of such nomination1 and 7ii7 the ,secretary certifies such nomination and designates such tract as a residential recovery zone4 7,c7 ,duration of designation ,a designation under subparagraph 7,b7 shall terminate on the date that is #c years after the date of the certification described in subparagraph 7,b77ii74 7,d7 ,state2 ,federally declared disaster2 disaster area ,the term ,state has the meaning given such terms in section #adjj,z-#a1 and ,federally declared disaster and disaster area have the meaning given such terms in section #afe7;i74 7#b7 ,principal residence ,the term principal residence has the same meaning as when used in section #aba4 7#c7 ,purchase2 purchase price ,the term purchase and purchase price have the meanings given such terms in section #cf7;c74 7d7 ,exceptions ,no credit under subsection 7a7 shall be allowed to any taxpayer for any taxable year with respect to the purchase of a residence if-- 7#a7 a deduction under section #aea with respect to such taxpayer is allowable to another taxpayer for such taxable year1 or 7#b7 the taxpayer fails to attach to the return of tax for such taxable year a properly executed copy of the settlement statement used to complete such purchase4 7e7 ,recapture of credit 7#a7 ,in general ,if a residence with respect to which a credit was allowed under subsection 7a7 ceases to be the principal residence of the taxpayer before the end of the #c-year period beginning on the date of the purchase of such residence the tax imposed by this chapter for the taxable year of cessation shall be increased by the amount of the credit so allowed and claimed4 7#b7 ,exceptions 7,a7 ,death of taxpayer ,paragraph 7#a7 shall not apply if the cessation is attributable to the taxpayer's death4 7,b7 ,involuntary conversion ,paragraph 7#a7 shall not apply if the cessation is attributable to a compulsorily or involuntarily conversion 7within the meaning of section #ajcc7;a77 and the taxpayer acquires a new principal residence during the #b-year period beginning on the date of such cessation4 7,c7 ,special rule for members of the armed forces1 etc 7i7 ,in general ,paragraph 7#a7 shall not apply if the cessation is attributable to ,government orders received by such individual1 or such individual's spouse1 for service on qualified official extended duty as-- 7,i7 a member of the uniformed services1 7,,ii7 a member of the ,foreign ,service of the ,united ,states1 or 7,,iii7 an employee of the intelligence community4 7ii7 ,definitions ,any term used in this subparagraph which is also used in section #aba7;d77#i7 shall have the same meaning as when used in such paragraph4 4 7b7 ,clerical amendment ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #be;,d the following new item3 ,sec4 #be;,e4 ,residential recovery zone homebuyer credit4 4 7c7 ,effective date ,the amendments made by this section shall apply with respect to purchases in taxable years beginning after the date that is #a year before the date of the enactment of this ,act4 #c4 ,treatment as opportunity zones 7a7 ,in general ,section #adjj,z-#a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7g7 ,certain disaster zones 7#a7 ,designation ,with respect to a ,federally declared disaster1 the chief executive officer of a ,state may designate under this paragraph not more than #e percent of the applicable disaster tracts in such ,state with respect to such disaster4 7#b7 ,no effect on limitation on number of designations ,an applicable disaster tract designated under paragraph 7#a7 shall not be taken into account in determining the limitation under subsection 7d74 7#c7 ,applicable disaster tract ,the term applicable disaster tract means1 with respect to a ,federally declared disaster1 a population census tract in the disaster area related to such disaster4 7#d7 ,federally declared disaster2 disaster area ,in this subsection1 the term ,federally declared disaster and the term disaster area have the meaning given such terms in section #afe7;i74 7#e7 ,applicable start date 7,a7 ,qualified opportunity fund businesses and property ,in the case of an applicable disaster tract designated under paragraph 7#a71 subparagraphs 7,b77i77,i71 7,c77i71 and 7,d77i77,i7 of section #adjj,z-#b7;d77#b7 shall each be applied by substituting the applicable start date for ,december #ca1 #bjag4 7,b7 ,extension of determination period ,in the case of an applicable disaster tract designated under paragraph 7#a71 section 7c77#b77;,b7 shall be applied by substituting the applicable start date for the date of the enactment of the ,tax ,cuts and ,jobs ,act4 7,c7 ,applicable start date ,the term applicable start date means1 with respect to a disaster area1 the earliest incident date specified in the declaration to which such area relates4 4 7b7 ,effective date ,the amendments made by this section shall apply with respect to ,federally declared disasters declared after the date of the enactment of this ,act4 #d4 ,credit under the ,community ,reinvestment ,act of #aigg for lending in a residential recovery zone ,section #hjd of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bijc7 is amended by adding at the end the following3 7e7 ,residential recovery zone loans ,in assessing and taking into account1 under subsection 7a71 the record of a financial institution1 the appropriate ,federal financial supervisory agency shall consider as a factor lending activities to individuals and businesses that are located in a residential recovery zone 7as defined under section #cf;,a7c7 of the ,internal ,revenue ,code of #aihf74 4